Auditor role does not involve challenging boardroom strategy, Professor tells Commons Treasury Select Committee
Expectations on auditors are too high and the profession should not be expected to avert management failure or challenge flawed business models, a leading academic has told MPs.
Appearing before the Treasury Select Committee investigation into the banking crisis Professor Michael Power of the London School of Economics yesterday defended the performance of the audit industry.
He added: 'Auditors are not there to challenge business models with finance directors. That is not their job. For that to happen, things would have to change substantially.'
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